Captain Grumpy may have been correct when he said the WMA2 was the better (faster) option to get in/out of trades.
I say this because
- the HA candles alone are so far behind real candles in indicating change when used as part of a WMA system alone, and
- up to 30% of pips in some trades are falling on the floor, because of these late entries/late exits, and
- using WMA5 as opposed to WMA2.also means trades are missed or entered/closed a day too late.
The three bullet points above all point to the same problem: late entry and late exits have cost pips.
This is not the right place to say this, since it is a thread on spotting entries/exits using HA candles.
But since the thread has withered and has a very weak pulse, I’m going to be bold and say it anyway:
The strategy would be a killer if weak trends or whipsaws could be identified as an adjunct to the main theory.
As far as I can see, there is a lot to be gained here by the addition of a trend-strength indicator, such as the ADX.
I may begin a new thread incorporating the WMA2, instead of WMA5, and use the ADX, or Stochastic-RSI indicator as a filter, with respect to Captain Grumpy and all the above participants who so freely gave of their time here. Other than that, I propose to keep everything else intact.
I never did understand why the PTP was used - it seemed too circumstantial for me.
I would have thought that a change of candle colour would be a more verifiable concept.
I may also include a comparison with the candle chart , as a filter to keep out of trades that have a high probability of whipsaw/failure.
I am sorry your efforts did not bear fruit - you certainly gave it your best.
Most of the proponents here simply burned out I believe.
Well done people. Thank you.
When/if I initiate a new thread, I will post a link to it here - I think this concept deserves further exploration.